Government says Central Bank an essential and accepted governance requirement

The Government has said that the autonomy for the Central Bank, within the framework of the RBI Act, is an essential and accepted governance requirement.

“Governments in India have nurtured and respected this,” said a tweet of the Ministy of Finance.

It further state a that both the Government and the Central Bank in their functioning have to be guided by public interest and the requirements of the Indian economy. For the purpose, extensive consultations on several issues take place between the Govt & the RBI from time to time, it said.

The Government, through these consultations, places its assessment on issues and suggests possible solutions. The Government will continue to do so, it said.